Visa, Mastercard's $30B Deal Hits A Snag: Judge Signals Rejection

In a recent development, the proposed $30 billion antitrust settlement by Visa Inc. V and Mastercard Inc. MA to limit credit and debit card fees for merchants is now in danger of being rejected.

What Happened: U.S. District Judge Margo Brodie indicated that she is likely to reject the proposed settlement, Reuters reports. This announcement was made during a hearing on Thursday, causing uncertainty about the future of the settlement.

The judge plans to provide a written opinion explaining her decision and the rationale behind it. This development comes as a blow to Visa and Mastercard, who had hoped to bring an end to a nearly two-decade-long legal battle.

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Both companies expressed their disappointment with the judge’s stance. Mastercard described the settlement as a “fair resolution” that would provide businesses with greater flexibility in managing card transactions. Meanwhile, Visa referred to it as an “appropriate resolution” to the long-standing case.

The proposed settlement, announced on March 26, aimed to resolve the majority of claims in a nationwide litigation that began in 2005. Small businesses, accounting for over 90% of the settling merchants, were expected to benefit from the agreement.

Why It Matters: The proposed settlement has been a topic of contention since its announcement. Critics argue that it offers little or no benefit to merchants. The potential rejection of the settlement could prolong the legal battle and have significant implications for the credit and debit card industry.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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